Buying your first home usually comes down to three questions: how much you can borrow, what help you’re eligible for, and how to avoid paying too much for the wrong property. This first home buyer guide covers all three, with the grants and schemes that apply in NSW, Victoria and Queensland as at October 2026.
Government schemes change often, so we’ve linked each one to its official page. Check it before you sign a contract.
Step 1: Know your budget before you look
The most common first home buyer mistake we see is falling for a property before knowing what the bank will lend. Before you start inspecting:
- Get pre-approval. A broker or lender assesses your income, expenses and debts and gives you a borrowing limit. It’s usually valid for 90 days.
- Work out your deposit. Most lenders want 20% to avoid lenders mortgage insurance (LMI). With the federal 5% Deposit Scheme, eligible buyers can buy with 5% and no LMI (more on that below).
- Budget for the costs on top of the price. Conveyancing, building and pest inspections, loan fees, insurance and moving costs. If you don’t qualify for a stamp duty exemption, duty is the biggest of these.
If you need help with finance, we can connect you with a mortgage professional early, so your budget is clear before you look at a single property.
Step 2: Check which grants and schemes you qualify for
There are two layers of help: federal schemes that apply everywhere, and state grants and stamp duty concessions that depend on where you buy.
Federal: the 5% Deposit Scheme
Formerly the First Home Guarantee, the 5% Deposit Scheme lets eligible first home buyers purchase with a 5% deposit without paying LMI. The government guarantees part of the loan to the lender instead.
Since 1 October 2025, the scheme has no income caps and no limit on places. Property price caps apply and vary by location. The cap for Sydney, for example, is $1.5 million. Check the current caps on the Housing Australia website.
A smaller deposit means a bigger loan and higher repayments, so it’s worth running the numbers both ways with your broker.
First Home Buyer NSW
- First Home Owner Grant: $10,000 for a new home valued up to $600,000, or a house and land package up to $750,000.
- Stamp duty (First Home Buyers Assistance Scheme): no transfer duty on new or existing homes up to $800,000, and a concession between $800,000 and $1 million.
Source: Revenue NSW.
First Home Buyer Victoria
- First Home Owner Grant: $10,000 for a new home valued up to $750,000.
- Stamp duty: exempt up to $600,000, with a concession up to $750,000.
Source: State Revenue Office Victoria.
First Home Buyer Queensland
- First Home Owner Grant: available for new homes valued under $750,000. The grant was $30,000 for contracts signed up to 30 June 2026. Check the amount that applies to your contract date.
- Stamp duty: eligible first home buyers pay no transfer duty on a new home. A first home concession also applies to established homes up to set price thresholds.
Source: Queensland Revenue Office.
Most grants only apply to new homes, and you usually need to move in within 12 months and live there for at least 6 to 12 months. If you’re weighing up a new build against an established home, the grant can tip the numbers, but it shouldn’t be the only reason you choose one.
Step 3: Choose where and what to buy
Your budget and the grants narrow the options. Then the real work starts: finding a property that suits you now and still holds its value in ten years. Things we look at for every first home buyer:
- Location fundamentals: transport, jobs, schools and planned infrastructure, not just the price.
- Supply: a suburb with thousands of new lots still to come can grow more slowly than one with limited land.
- The property itself: orientation, layout, the size and shape of the block, and what it would cost to fix any problems.
- Recent comparable sales: what similar homes actually sold for, which tells you what to offer.
New build or established?
Many first home buyers look at house and land packages because they can qualify for the First Home Owner Grant and stamp duty savings, and new homes come with builder warranties.
The trade-offs are the build time, the risk of construction delays, and the fact that in some estates the house loses value while the land does the growing. An established home in the right suburb can be the better long-term buy, even without the grant.
Step 4: Do your due diligence
Before you commit, get:
- a building and pest inspection on any established property
- the contract reviewed by a conveyancer or solicitor before you sign or bid at auction
- a check of strata records if you’re buying an apartment or townhouse
In NSW and Victoria, private treaty purchases usually come with a cooling-off period, but auctions don’t. If you’re bidding, have your finance, inspection and contract review done beforehand.
Step 5: Negotiate and settle
Knowing what similar properties sold for, and what the vendor needs (a quick settlement, a longer one, certainty), puts you in a stronger position than simply offering a number.
Once the contract is signed, your conveyancer and lender work towards settlement. That’s typically 30 to 90 days for an established home, and longer for a build.
Where a buyer’s agent fits in
A buyer’s agent works for you, not the seller. For first home buyers, that usually means:
- shortlisting suburbs and properties that fit your budget and goals
- assessing each property and checking it against recent sales
- negotiating or bidding on your behalf
- coordinating your broker, conveyancer and inspector so nothing is missed
At AJ Property Experts we help first home buyers across NSW, Victoria and Queensland. If you’d like to talk through your situation, book a free strategy call.
First home buyer FAQs
Can I use more than one first home buyer scheme?
Often, yes. Many buyers combine the federal 5% Deposit Scheme with a state stamp duty concession and, for a new home, the First Home Owner Grant. Each has its own eligibility rules, so confirm each one separately.
Do I qualify if my partner has owned property before?
Usually not for state grants. In most states, if either buyer has owned residential property in Australia before, you’re both ineligible for the First Home Owner Grant. Check the rules in your state.
Is a house and land package always cheaper?
Not always. The grant and stamp duty savings help, but check the full cost, including site costs, landscaping, fencing and driveways, which aren’t always included.
General information only. This article doesn’t consider your personal circumstances and isn’t financial, legal or tax advice. Grants, thresholds and eligibility rules change, so check the official sources linked above and speak with a licensed professional before you buy.
